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FEBRUARY 23, 2010
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– Text Messaging: Regulations for Dealer Communications with Customers
LEGISLATIVE UPDATE
– Legislators Stand Up For Local Businesses
– VIDEO: Senate Majority Leader John Morse Discusses HB 1049
– HB 1049 Legislative Update
UPCOMING SEMINARS
– Fair Labor Standards Act Seminar
CALENDAR OF EVENTS
– Upcoming Events
– Denver Auto Show
– NADC 6th Annual Member Meeting & Conference
– CADA 2010 Annual Golf Tournament
DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS
–Share Your Accomplishments
THE AFTERFACT
–All the News That's Fit to Email!
ARCHIVES
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& Legal Articles from the Open
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Outlook archives.
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www.nada.org
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Regulatory Affairs information.
STATE GOVERNMENT RESOURCES
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Division of the Colorado Dept.
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Registration section of the
Colorado Dept. of Revenue,
Motor Vehicles Division.
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Department of Labor &
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AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articlespertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.
TEXT MESSAGING: REGULATIONS FOR DEALER COMMUNICATIONS WITH CUSTOMERS
Communications with prospective customers or others via “text messaging” may be subject to a number of federal regulations. The legal landscape covering text messaging was crafted before such technology existed. A text message may be deemed to be a phone call, an email, or perhaps even both under federal law. Read the issue summary from NADA here.
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If you have questions on any legal or regulatory topic, please contact:
DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance
 
LEGISLATORS STAND UP FOR LOCAL BUSINESSES
Message from State Senators regarding GM Campaign against HB-1049
General Motors accepted taxpayer money to avoid bankruptcy and last May GM ended its relationship with many car dealers. Ultimately, despite the taxpayer bailout, GM still filed for federal bankruptcy protection and terminated franchise dealers to avoid paying proper compensation. Now GM wants to reopen dealerships in Colorado with new owners, some with out-of state investors. GM wants to open these new dealerships without first offering the franchises to previously terminated Colorado dealers and without paying proper compensation to the dealers it terminated.
Today, Democrats and Republicans stood with local auto dealers to speak against GM’s actions. They called upon GM to stop deceiving Coloradans and wait until the legislature passes a bill which will protect Colorado businesses.
“This attempt by General Motors to deceive the citizens of Colorado is shameful,” said Senate President Brandon Shaffer (D-Longmont). “GM is attempting to undermine this common sense legislation that protects Colorado’s locally owned auto dealers.”
In response to the forced closure of 39 local dealer franchises, state legislators have brought legislation, House Bill 1049, which will protect local auto dealers and ensure they are treated fairly by manufacturers. The bill requires carmakers to reimburse dealers for facility upgrades that they made in the past five years. Additionally, it ensures terminated auto dealers to have a first right of refusal should the manufacturer decide to reestablish a dealership in the same market area after terminating the dealer. HB 1049 is sponsored by Representatives Joe Rice (D-Littleton) and Marsha Looper (R-El Paso) and Senators Chris Romer (D-Denver) and Shawn Mitchell (R-Broomfield).
This week, GM announced a $60,000 campaign against the bill. The company, which ended its relationship with some of its top performing, family-owned and family-orientated local dealer franchises, makes claims that taxpayers will pay the ultimate sacrifice if the bill is passed.
Senate Majority Leader John Morse (D-Colorado Springs) added, “It’s appalling that General Motors is using taxpayer dollars to buy newspaper and radio ads to oppose the very dealers who have loyally supported GM and their brands for generations.”
Melissa Kuipers, Vice President of Government Relations for the Colorado Automobile Dealers Association, said, “It is just plain wrong that these out of state manufacturers cut 39 hometown dealers during their bankruptcy proceedings, only to then turn around and reallocate those very franchises to new dealers. The local dealers weren’t the ones who were in bankruptcy.”
The bill passed out of the House by a vote of 60-5 and will now be heard in the Senate.
Senate President Brandon Shaffer sent an open letter to Governor Bill Ritter asking for the Governor to join the legislature in supporting Colorado’s locally owned auto dealers.
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VIDEO: SENATE MAJORITY LEADER JOHN MORSE DISCUSSES HB 1049
Senate Majority Leader John Morse discusses HB 1049 and the recent actions of General Motors on his video blog.
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HB 1049 LEGISLATIVE UPDATE
HB 1049 will be heard by the Senate Business Labor and Transportation Committee at 1:30pm, Monday, March 1st.
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Questions or Comments? Please contact:
FAIR LABOR STANDARDS ACT SEMINAR
Wed., Mar. 10th, 2010
8:00am to 10:00am
(breakfast included)
CLICK HERE for registration and more information!
Objective:
As the U.S. Department of Labor’s enforcement of the Federal Fair Labor Standards Act continues to evolve, it is important that employers keep apprised of the current wage and hour laws and their enforcement by the U.S. Department of Labor. This detailed presentation is designed to help you limit your exposure to potentially costly claims and fines and update you on the latest issues under the Federal Fair Labor Standards Act.
Highlights of topics include:
- Discussion regarding the current minimum wage laws;
- How to calculate a sales person pay, when a sales person has not earned enough in commission;
- How to determine whether an employee can properly be categorized as exempt from overtime;
- The importance of keeping timesheets and all other wage and hour records on all employees;
- Most common pitfalls for employers under the FLSA;
- Most recent bulletin/guidelines issued by the U.S. Department of Labor.
Presented by: Timothy Nemecheck and Michelle Magruder, Nemechek and Magruder, LLC
CLICK HERE for registration and more information!
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| Event Description |
Date/Time |
Location |
Fair Labor Standards Act Seminar
Denver
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Wed., Mar. 10th, 2010
8:00am to 10:00am
(breakfast included) |
William D. Barrow Building
CADA Headquarters
290 E. Speer Blvd (SW Corner of Grant/Speer), Denver, CO
Phone: 303.831.1722
CLICK HERE for registration and more information!
Register Online! |
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If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org
| Event Description |
Date/Time |
Location |
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Wednesday, April 7, 2010
thru
Sunday, April 11, 2010 |
Colorado Convention Center
700 14th Street Denver 80202
CLICK HERE for more information. |
National Association of Dealer Counsel's (NADC) 6th Annual Member Meeting and Conference
Dallas, Texas
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April 11 to 13, 2010
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CLICK HERE for more information!
Membership in NADC is strongly encouraged for all CADA member dealers’ attorneys. The information shared between attorneys defending dealers around the country is incredibly valuable! |
CADA 2010 Annual Golf Tournament
SAVE THE DATE!
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Monday, August 9, 2010
11:00am-11:45am Registration/Practice
12:00 Noon – Shotgun Start |
Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO 80214 |
LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.
THE AFTERFACT
- Ford lays off 900 workers at Mustang plant
Forbes, February 16
Ford Motor Co. said Tuesday that it plans to cut 900 workers at the Michigan plant that makes the Mustang, which saw sales drop sharply last year, but most will get positions at other facilities.
- US demands Toyota turn over recall documents
Forbes, February 16
The government ordered Toyota to turn over documents related to its massive recalls Tuesday, pressing to see how long the automaker knew of safety defects before taking action.
- Chrysler gets till March 2 to nail down Sterling Heights plant deal
Detroit Free Press, February 16
The Sterling Heights City Council voted unanimously tonight to give Chrysler until March 2 to provide a written agreement that it will purchase a plant from Old Carco’s bankruptcy estate.
- NHTSA investigates Toyota
The Detroit News, February 16
The National Highway Traffic Safety Administration said Monday it was quickly investigating hundreds of new complaints about recalled Toyota Motor Corp. vehicles, as the automaker sought to contain the fallout on several fronts.
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